Consumer Advocates, Auto Coalition Fight to Keep 'Rebuilt Wrecks' Off Nation's Roadways

WASHINGTON, May 20 /PRNewswire-USNewswire/ -- The National Automobile Dealers Association (NADA) has joined a diverse coalition of consumer protection, law enforcement, and auto industry representatives to urge the U.S. Department of Justice to finalize a critical rulemaking to help prevent rebuilt, wrecked, flooded, or stolen vehicles from unknowingly ending up on a consumer's driveway.

Each year, millions of vehicles are totaled, and many of them are refurbished and return to the road with no record of the vehicle's severe damage. In an effort to benefit all used car buyers by reducing vehicle title fraud, Congress passed legislation in 1992 creating a national information system to link state DMVs electronically and to mandate that insurers and salvage yards report the VINs of junk and salvage vehicles to the National Motor Vehicle Title Information System (NMVTIS).

In a May 20 letter to Attorney General Michael Mukasey, NADA, consumer protection organizations, law enforcement, and auto industry representatives strongly urged that the Justice Department make the NMVTIS rulemaking a priority by finalizing the necessary regulations to implement the insurance and salvage yard VIN disclosure requirements under the Anti-Car Theft Act as soon as possible.

In addition, the letter urges the Justice Department to make the NMVTIS data readily accessible to the public (via a Web site or similar electronic media) without waiting for the rulemaking to occur.

"The auto industry and consumer advocates share the same goal of ensuring that salvage vehicle reporting requirements are enforced under the law," said Ivette Rivera, executive director of legislative affairs for the National Automobile Dealers Association. "NMVTIS presents an important opportunity to track potentially dangerous salvage vehicles - whether it is keeping a problem vehicle off a dealer's lot or helping consumers spot a severely damaged vehicle."

The Justice Department has failed to meet the Congressional deadline of January 1998 for implementing the rules for the NMVTIS database. Consequently, vehicle salvage fraud, title-washing and VIN cloning (switching the VIN of a stolen car with the VIN of a similar make and model) continues to plague used car buyers.

NADA, founded in 1917 and based in McLean, Va., represents about 20,000 new-car and truck dealers with nearly 43,000 separate franchises, both domestic and import.

May 20, 2008


Honorable Michael Mukasey
Attorney General
United States Department of Justice
950 Pennsylvania Avenue, NW
Washington, DC 20530


RE: National Motor Vehicle Title Information System (NMVTIS)

Dear General Mukasey:

We, the consumer, industry and law enforcement groups and entities listed
below, are writing to inform you that we are in agreement that:

1) The U.S. Department of Justice should move forward as rapidly as
possible to publish proposed regulations to implement the insurance and
salvage yard requirements of Title 49 U.S.C. Sections 30502 and 30504 of the
Anti-Car Theft Act.

2) The U.S. Department of Justice should move forward as rapidly as
possible, and without waiting for Anti-Car Theft Act rulemaking, to make the
National Motor Vehicle Title Information System ("NMVTIS") data readily
accessible to the public (via a website or similar electronic media).

Thank you for your attention to this matter, which is of great importance
to all used car buyers, auto dealers, other businesses, consumer protection
organizations, state and federal law enforcement agencies, and the nation as a
whole.

Sincerely,

Alliance of Automobile Manufacturers
Association of International Automobile Manufacturers
Assurant Solutions
Automotive Recyclers Association
Automotive Service Association
CarMax
Consumer Action
Consumer Federation of America
Consumers for Auto Reliability and Safety
Experian
Hyundai Motor America
Manheim Auto Auctions
National Association of Consumer Advocates
National Auto Auction Association
National Automobile Dealers Association
National Consumers League
National Independent Automobile Dealers Association
National Salvage Vehicle Reporting Program
North American Export Committee
Public Citizen
Toyota
First Call Analyst:
FCMN Contact:


Source: National Automobile Dealers Association

CONTACT: Bailey Wood of NADA Legislative Affairs, +1-202-547-5500,
+1-202-557-1674 (mobile)

Web Site: http://www.nada.org/


2008-05-20 13:02:20 0366823 PRNEWSWIRE

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